Mortgage approvals highest since December 2009

Published 02nd Dec 2011

Mortgage approvals edged up more than expected to their highest in nearly two years last month, but the overall picture for lending remained well below pre-crisis levels and the outlook appears set to darken.

The figures come just hours before Chancellor George Osborne unveils updated government growth and borrowing figures, expected to foreshadow a sharp slowdown in the economy and a bigger government debt burden.

The Bank of England said approvals for home loans -- a gauge of house prices in six months' time -- numbered 52,743 in October, up from 51,193 in September.

This was the highest since December 2009, and above economists' forecasts of a reading of 51,500, but well below the long run average before the financial crisis of around 90,000.

Mortgage lending rose by the biggest amount since January 2011 at 1.288 billion pounds, but net unsecured consumer credit was weak on the month, edging up just 49 million pounds, the smallest increase since the start of the year.

BoE figures showed the biggest annual fall in M4 broad money supply since monthly records began in 1983.

The BoE's preferred measure, M4 excluding intermediate other financial companies, showed a small annual rise of 2.8 percent.

Source: ' Reuters '

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